08 14 2006 EDA MIN - Laserfiche WebLink

Home Browse Search

EconomicDevelopment AuthoriryMinutes August 14, 2006 Page 3 For business recruitment purposes. Ms. Mehelich requested that the competition issue be discussed by the Metro Fringe group agenda on their neat meeting, as well as on the other regions' agendas. MOTION BY COMMISSIONER DWYER AND SECONDED BY COMMISSIONER FARBER TO AUTHORIZE THE EXPENDITURE OF UP TO $500 FOR THE ENSA PROJECT. MOTION CARRIED 6-0. Consider Purchase Option Policy for Norrhs[az Business Park Ms. Mehelich stated that staff has received inquires from a couple of local manufacturers indicating their interest in relocating to construct facilities between 60,000 to 125,000 square feet; one in 12 months, the other in 24 months. She noted that only Lot 4, Block 1 (9.29 acres) in the city-owned Northstar Business Park would accommodate the proposed project size. Also there is a privately-owned 18-acre lot in Sandpiper Business Park. Ms. Mehelich explained that one of the manufacturers is interested in purchasing the Northstar Business Park lot. She reviewed issues related to entering into a purchase option with the company. Conutussioner Tveite questioned why Lot 1, Block 1 was not being considered. Ms. Mehelich explained that the 8.88 acres of developable property are divided by the gas line easement and a maximum 40,000 square foot building footprint could likely be built on the site. Commissioner Tveite felt that the down payment should benon-refundable and that he would support requiring at least apre-concept plan with building elevations. Commissioner Dwyer concurred the down payment should benon-refundable. He felt that if both prospects are interested in the property, the EDA should opt for the best offer with the best terms. He suggested anon-azbitrage agreement also be required, so that the buyer could not turn azound and sell the property for a profit to someone else. Cotrunissioner Motin stated that he was not concerned about the building elevations, since there were standards in place for the Business Park zoning district. Community Development Director Scott Clark stated that the reason it was suggested to consider requiring a site plan and building elevations was to ensure that the end product was what they had envisioned. He noted that the standards establish minimum quality, and that the design should be tied to the agreement in the beginning. Commissioner Klinzing stated that she was in favor of securing an option with a prospect who would be ready to build in 12 months. Commissioner Dwyer stated that asix-month time period was more realistic. Chair Gongoll stated that he concurred with Commissioner Motin that a site plan was not necessary at this point, but he felt that Scott's suggestion for building elevations was good, so that the client would understand what they were looking for. Commissioner Moon stated that they have received feedback that the city's standards are too stringent. Commissioner Dwyer stated that he felt the EDA owes it to the existing companies in the Business Park to require high standards. He felt that asix-month time period was not out of line, and that if the companywanted an extension, an additional payment could be required. He felt that if six months did not work for the company, they would still have an opportunity to sell the property in 2007. Commissioner Tveite concurred that an extension should include an additional fee. Commissioner Dwyer asked if an option payment of 10%